The article analyzes the economic foundations for mobilizing private and blended capital in Ukraine through public–private partnerships (PPP) amid the urgent need to restore and modernize infrastructure under constrained fiscal space. It is shown that PPPs make it possible to combine long-term resources with performance-based remuneration and a rational allocation of risks, whereas traditional public investment mechanisms neither guarantee sufficient funding volumes nor ensure whole-life asset efficiency. The study identifies key barriers: a gap between CAPEX needs and budget capacity; higher WACC driven by war-related, political, regulatory, and currency risks; institutional gaps in project preparation and selection; a protracted pre-feasibility/feasibility/VfM/PSC cycle; a tension between socially acceptable tariffs and project bankability; and limited project capacity at the municipal level. It is substantiated that selecting the payment model (user-paid tariff, availability payments – AP, or hybrid) should be based on the life-cycle cost (LCC) approach, Value for Money (VfM) assessment and the Public Sector Comparator (PSC), as well as analysis of demand elasticity and fiscal space. The article demonstrates the need for a coherent de-risking architecture combining political/war risk insurance and guarantees with VGF and MRG instruments, indexed payments, FX hedging, and the development of long-term hryvnia financing (project and municipal bonds, participation of institutional investors). The paper proposes institutionalization (a central coordinating body, regional hubs, a Project Preparation Facility), standardization of template contracts and KPI / SLA, fiscal rules (limits on direct and contingent liabilities, a registry, regular stress tests), alongside open data, market sounding, and digital contract-management tools (BIM / CMMS / IoT). The importance of ESG requirements and transparent monitoring is emphasized. The conclusion is that a portfolio-based, standardized, and transparent PPP approach reduces the risk premium and WACC, increases competition and fiscal manageability, improves VfM, and accelerates infrastructure recovery and modernization without sacrificing service quality.

Citation:

Rebryna, A., & Malskyy, O. (2025). ECONOMIC PRINCIPLES OF ATTRACTING INVESTMENTS TO UKRAINE ON THE BASIS OF PUBLIC-PRIVATE PARTNERSHIP. International Interdisciplinary Scientific Journal “Expert”, 2(1), 89–95. https://doi.org/10.62034/2815-5300/2025-v2-i1-008

Full text article available at: https://scientific-journal.expert/archives/2025-v2-i1-008

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